COMPANY ACTIVITY

Kangala delivers record results for Universal

HAVING resumed steady state operations following completion of pit reconfiguration activities in the March quarter, Universal Coal’s Kangala colliery in South Africa delivered a record production result for the June quarter.

Lou Caruana
Kangala delivers record results for Universal

Run of mine (ROM) of 1,043,890 tonnes was achieved, up 35% from the previous quarter.

With the dry season midway through, climatic conditions are expected to support continued strong production for the months ahead, Universal CEO Tony Weber said.

Total coal sales increased by 39% quarter on quarter to 609,120 tonnes.

“Having concluded the pit reconfiguration, Kangala is now firing on all cylinders, and delivering record production in the process,” he said.

“We anticipate increasing production further in the year ahead, thereby delivering strong sales and cashflow to pay down debt facilities and to fund growth prospects.”

For the year, Kangala produced over 3 million tonnes of ROM coal, with sales in excess of 2 million tonnes.

Coal of Africa has announced that its offer for the entire share capital of Universal as contained in CoAL’s offer document dated 21 December 2015 as supplemented, has lapsed.

"While we are disappointed that CoAL's offer did not proceed, we can now devote all our attention and resources to operational matters,” Weber said.

“Foremost, we have a clear path forward to commission our second operation, NCC, within the next few months. With our Kangala Colliery having delivered record production in its last quarter, we are well positioned to generate strong cashflow and support further growth for the rest of the year.”

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions